Nigeria's latest earnings season has produced a mix of strong performances, disappointing results, and improved recoveries across different sectors. Several listed companies released their financial results, giving investors fresh insight into how businesses are performing in 2026.
While some companies continued to struggle with rising costs and heavy debt, others reported record profits and stronger operational performance. The banking sector also attracted significant attention as market valuations reached new highs.
Caverton Offshore Shows Signs of Recovery Despite Losses
Caverton Offshore Support Group reported a much smaller pre-tax loss for its 2025 financial year.
The company recorded a pre-tax loss of ₦13.9 billion, compared with a much larger loss of ₦53.7 billion in 2024. Although the business is still unprofitable, the figures suggest that its financial position is improving.
However, revenue dropped by 40% to ₦24.1 billion due to weaker activity in its aviation and marine operations.
One positive highlight was an operating profit of ₦3.6 billion, showing that the company's core business remains viable. The biggest challenge continues to be its debt burden of about ₦71 billion, with high interest costs putting pressure on earnings.
Japaul Reports Higher Revenue but Lower Profit
Japaul Gold & Ventures posted mixed financial results for the 2025 financial year.
Revenue increased by 28% to ₦25.25 billion, largely driven by its equipment rental business, which generated about 98% of total revenue.
Despite stronger sales, pre-tax profit declined by 13% to ₦1.3 billion.
The fall in profit was mainly caused by:
Higher administrative expenses
Increased finance costs
Lower income from other sources
The company's total assets expanded to ₦38 billion, indicating continued business growth despite weaker profitability.
Transcorp Power Faces Operational Challenges
Transcorp Power recorded softer first-half 2026 results.
Pre-tax profit declined by 6.4% to ₦55 billion as revenue fell because of lower electricity deliveries and reduced capacity charges.
According to the company, repeated transmission line vandalism prevented it from supplying all the electricity it was capable of generating.
For power generation companies, revenue depends largely on how much electricity can be delivered to the national grid. Even when generating capacity is available, transmission problems can significantly reduce earnings.
Africa Prudential Delivers Strong Half-Year Performance
Africa Prudential continued its impressive financial performance during the first six months of 2026.
Pre-tax profit increased by 21.7% to ₦2.4 billion, while profit after tax rose by 18% to ₦1.59 billion.
The company's major revenue sources included:
1. Registrar services
2. Dividend payment services
3. Rights issue management
4. Shareholder services
A major contributor to earnings was interest income, which climbed to ₦3.46 billion.
Higher interest rates in Nigeria have benefited companies like Africa Prudential because they earn more income from investing surplus funds in fixed-income securities.
First HoldCo Records Historic Profit Growth
One of the biggest surprises during the earnings season came from First HoldCo.
The company reported a record half-year pre-tax profit of ₦653.54 billion, representing an 83.5% increase compared with the previous year.
Several factors contributed to this outstanding performance:
Interest income reached ₦1.43 trillion.
Fee income increased by 28.7% to ₦178.5 billion.
Loan impairment charges fell sharply from ₦185.4 billion to ₦116 billion.
Other operating income increased significantly.
Lower impairment charges played a major role in boosting profitability after weighing heavily on previous financial results.
First HoldCo Becomes Nigeria's Most Valuable Banking Stock
Following its impressive earnings announcement, First HoldCo's share price surged by 10%, pushing it above ₦100 for the first time.
The rally lifted its market capitalisation to approximately ₦4.8 trillion, making it Nigeria's largest listed banking stock.
The banking sector rankings by market capitalisation now stand as follows:
1. First HoldCo – about ₦4.8 trillion
2. Zenith Bank – about ₦4.79 trillion
3. GTCO – about ₦4.71 trillion
4. Stanbic IBTC Holdings – about ₦2.65 trillion
5. UBA – about ₦2.14 trillion
6. Ecobank Transnational Incorporated – about ₦1.56 trillion
7. Access Holdings – about ₦1.39 trillion
8. Fidelity Bank – about ₦1.38 trillion
Could Nigerian Banking Stocks Continue to Rise?
The strong performance of First HoldCo has raised questions about whether other major banking stocks could experience similar gains.
At current valuations, several banks still trade at relatively low price-to-earnings (P/E) ratios compared with First HoldCo.
For example:
Zenith Bank trades at around 4.7 times earnings.
GTCO trades at roughly 5.5 times earnings.
UBA trades at about 6.2 times earnings.
Stanbic IBTC trades at around 6.7 times earnings.
If these banks deliver strong half-year financial results, investors may expect their valuations to improve.
However, future share price performance will still depend on factors such as earnings growth, dividend expectations, economic conditions, and investor sentiment. As with any investment, market movements remain uncertain.
Conclusion
The latest earnings season highlights the different paths Nigerian listed companies are taking in 2026. Caverton Offshore is gradually reducing its losses, while Japaul continues to grow revenue despite rising costs. Transcorp Power remains affected by operational challenges in the electricity sector, and Africa Prudential is benefiting from higher interest rates.
The standout performer was First HoldCo, whose record earnings helped it become the most valuable banking stock on the Nigerian Exchange. Investors will now closely watch upcoming financial reports from other major banks to see whether the sector can sustain its recent momentum.
What Do You Think?
Which of these Nigerian stocks do you believe has the strongest long-term investment potential?
Do you think Nigerian banking stocks are still undervalued after the recent market rally?
Which company's latest earnings surprised you the most, and why?